Martin Lewis has warned people not to use cash when making "significant" purchases.
After the collapse of Thomas Cook , many holidaymakers who had booked through the travel agent found themselves in a fight to get their money back.
While for those already on a Thomas Cook holiday, angry hoteliers were demanding payment from guests.
Now, the Money Saving Expert has advised people to ditch cash and pay with card instead.
In Martin's newsletter , he wrote: "Thomas Cook collapsed this week - tragic for staff and worrisome for customers.
"During interview Q&As, when I was asked about those without ATOL or ABTA cover, I could explain protections for debit & credit card payers, but had to tell some: 'If you paid by cash, cheque or BACS, sadly you're UNLIKELY to get any money back.' Cash just isn't a safe way to pay.
"This isn't a militant call to ditch paper and coins. Cash can be convenient, help impulse control and work as a budgeting aid. And it needs supporting to help many older people who won't/can't change.
"Yet most people should now use plastic for all significant purchases."
With regards to Thomas Cook, Martin explained that the Civil Aviation Authority (CAA) and ATOL will cover your hotel from the Monday that Thomas Cook went into administration until the point you leave.
However, for periods before that, the hotel company will have to claim off the administrator, “which is likely to be a few pence in the pound," Martin said.
